Summary
Wells Fargo & Company/MN (WFC) reported net income of $5.9 billion, or $1.20 per diluted share, for the first quarter of 2019. This represents an increase from $5.1 billion, or $0.96 per diluted share, in the prior year's first quarter. Total revenue for the quarter was $21.6 billion, a slight decrease from $21.9 billion in Q1 2018, driven by lower noninterest income, partially offset by a modest increase in net interest income. The company continues to focus on rebuilding trust and improving risk management, highlighted by ongoing initiatives to address past sales practice issues and enhance compliance programs. Capital ratios remain strong, with Common Equity Tier 1 at 11.92%, well above regulatory minimums. The company returned $6.0 billion to shareholders through dividends and share repurchases, a significant increase from the prior year. Despite the year-over-year earnings growth, the company faces ongoing regulatory scrutiny and remediation efforts stemming from past issues. Total assets remained stable at $1.89 trillion, but average deposits saw a slight decline. Credit quality remained strong with low net charge-offs. The company is actively managing its capital structure and returned capital to shareholders, signaling confidence in its underlying performance and capital position. Investors should monitor the progress of regulatory remediation efforts and the company's ability to drive sustainable revenue growth.
Financial Highlights
37 data points| Revenue | $21.61B |
| Interest Expense | $4.69B |
| Net Income | $5.86B |
| EPS (Basic) | $1.21 |
| EPS (Diluted) | $1.20 |
| Shares Outstanding (Basic) | 4.55B |
| Shares Outstanding (Diluted) | 4.58B |
Key Highlights
- 1Net income increased to $5.9 billion, or $1.20 per diluted share, up from $5.1 billion, or $0.96 per diluted share, in Q1 2018.
- 2Total revenue was $21.6 billion, a slight decrease of 1% year-over-year, due to lower noninterest income partially offset by higher net interest income.
- 3Return on assets (ROA) improved to 1.26% and return on equity (ROE) to 12.71% compared to 1.09% and 10.58% respectively in the prior year.
- 4The efficiency ratio improved to 64.4% from 68.6% in the prior year, indicating improved operational efficiency.
- 5The company returned $6.0 billion to shareholders through common stock dividends and net share repurchases, a 49% increase from $4.0 billion in Q1 2018.
- 6Common Equity Tier 1 (CET1) ratio remained strong at 11.92%, above the company's internal target of 10%.
- 7Nonaccrual loans decreased by 6% year-over-year, indicating continued strong credit quality.